1. At present, too many jobs are chasing too few ‘good’ engineers in India. So the trend is to have at least 3-4 job offers in hand and take the final decision based on salary.
2. Among Asian countries India is witnessing maximum amount of salary raise of 15% year-on-year. This is mainly because of the double digit growth rate Indian companies are witnessing in the recent quarters.
3. The rupee is becoming weaker day by day. Organizations which are dealing in foreign currencies get about 5% of their margins by smart treasury management.
Even though the above mentioned factors are acting positive as of today, it is not sustainable at all. This is mainly because, the wage difference between US and India is narrowing down and other outsourcing locations like China and Eastern Europe are picking up pretty fast. Apart from this, growing any money (Including salary) at 15% year-over-year is ‘Almost impossible’ from the basics of investing. As far as I know only the ‘Investment Guru’ Warren buffet is able to offer such a remarkable Return-On-Investments (ROI) over a long period of time.
So what do we do about this? According to me we can address this problem in two ways:
2. Drive towards value creation: For existing knowledge workers a strong drive needs to be created towards creating ‘Value’. The value addition should come in the form of intellectual property creation, product innovation for emerging markets and getting into the non-technical aspects of the product life cycle. This will make sure that there is a ‘Beyond-cost’ advantage for organizations by having their shop in India.